Market Movers: Electra Battery Materials Jumps 96% On LG Energy Contract Expansion

Electra Battery Materials (TSXV: ELBM) is the major mover of the day, currently up 96% to $3.02 after announcing yesterday the expansion of terms of a battery grade cobalt supply agreement with LG Energy Solutions.

Under the terms of the revised agreement, LG Energy will now be supplied with 19,000 tonnes of battery grade cobalt over five years, beginning in 2025. The supply arrangement will see 3,000 tonnes delivered in the first year of the contract, which will increase to 4,000 tonnes per year for the years thereafter under a pricing arrangement that was not disclosed.

The original contract, entered into in September 2022, called for 7,000 tonnes to be procured by LG Energy.

The arrangement will also see the duo collaborate to explore ways to advance opportunities within the EV supply chain in North America.

The cobalt sulfate to be supplied will come from the firms refinery, the only such refinery in North America, which is found north of Toronto, Ontario in Temiskming Shores. The company is also running a plant-scale black mass recycling trial near to its refinery to recover elements such as lithium, cobalt, nickel, graphite, and manganese, which is slated to become commercialized next year.

The refinery is still under construction, with additional capital required to complete the facility and achieve final commissioning. Electra is said to be working to source funding from strategic investors, the government, and other sources.

READ: Electra Battery Materials Considers Construction Of Second Cobalt Sulfate Refinery

To that end, a $10.0 million financing was announced on July 12 to raise funds for its refinery complex and to settle existing payables among other items. The financing is a condition of the company receiving a $10.0 million investment from Three Fires Group, a First Nations group committed to investing in non-fossil fuel clean energy projects.

“Following a successful black mass recycling trial at our battery materials park in Temiskaming Shores, the strategic investment by Three Fires will help us to prioritize our focus and accelerate development of a permanent 2,500 tonne per annum recycling refinery, resulting in near-term cash flow at a low capital intensity while we continue to advance the cobalt sulfate refinery,” commented Trent Mell in relation to the investment by Three Fires.

Electra battery Materials last traded at $3.02 on the TSX Venture.


Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization unless otherwise mentioned. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Why Copper Juniors Could Explode After This Trade War Move | Christian Easterday – Hot Chili

Silver Is Rarer Than Gold, And the Market’s Waking Up | Shawn Khunkhun – Dolly Varden Silver

Gold Will Hit North of $4,000: Who’s Actually Producing? | Shane Williams – West Red Lake

Recommended

ESGold Sees ANT Survey Reveal Vertically Continuous System To 1,200 Metres Depth

First Majestic Produces 7.9 Silver Equivalent Ounces In Q2, Lifts Production Guidance

Related News

Electra Battery Materials Sees CFO Leave Firm For Senior Precious Metals Producer

Electra Battery Materials (TSXV: ELBM) has seen its chief financial officer resign at a critical...

Thursday, April 21, 2022, 07:50:21 AM

Electra Battery Materials Considers Construction Of Second Cobalt Sulfate Refinery

They may not have yet completed their first cobalt sulfate refinery, but Electra Battery Materials...

Wednesday, June 22, 2022, 08:36:14 AM

US Energy Department To Lend GM And LG $2.5 Billion For EV Battery Factories

The US Department of Energy on Monday announced that it will be lending US$2.5 billion...

Wednesday, July 27, 2022, 04:25:00 PM

Electra Enters Joint Venture For Battery Recycling In Southern Ontario

Electra Battery Metals (TSXV: ELBM) has entered into a joint venture arrangement with a local...

Wednesday, September 18, 2024, 08:32:27 AM

Snow Lake Lithium Enters MOU With LG Energy Solutions For Supply Of Lithium

Snow Lake Lithium (NASDAQ: LITM) appears to have the hot news of the day, announcing...

Friday, September 23, 2022, 08:40:43 AM